I don't agree. Charts are not the only tool here, for example world events and macroeconomics. And certainly not in this market unless you are doing an oversold swing. #Gold will explode by the end of this month!
The explanatory text in the displayed chart is < 100% lucid, IMO. From the first page of the linked text:
"The data since 1945 is a simple calculation using data from the Federal Reserve Z.1 Statistical Release, section B.103, Balance Sheet and Reconciliation Tables for Nonfinancial Corporate Business. Specifically, it is the ratio of Market Value divided by Replacement Cost. It might seem logical that fair value would be a 1:1 ratio. But that has not historically been the case. The explanation, according to Smithers & Co. (more about them later) is that "the replacement cost of company assets is overstated. This is because the long-term real return on corporate equity, according to the published data, is only 4.8%, while the long-term real return to investors is around 6.0%. Over the long-term and in equilibrium, the two must be the same..."
$GDXJ$GLD$SLV$BTC.X what, after 33 weeks you're seeing the light - throwing in the towel? Based on.. Buy [BTC] high.. Sell [GLD] low? Cue the BTM in GOLD... See this chart:
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Epic back to back quarters.
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I don't agree. Charts are not the only tool here, for example world events and macroeconomics. And certainly not in this market unless you are doing an oversold swing. #Gold will explode by the end of this month!
Plunging Bond Market Signals Trouble Ahead
Still feel the same way about gold?
The Elliott Wave Analysis: Weakness Of Chinese Yuan Causes Sell-Off On Gold And Aussie
I would never sell my gold for Chinese Junk currency!
The Q Ratio And Market Valuation: March Update
The explanatory text in the displayed chart is < 100% lucid, IMO. From the first page of the linked text:
"The data since 1945 is a simple calculation using data from the Federal Reserve Z.1 Statistical Release, section B.103, Balance Sheet and Reconciliation Tables for Nonfinancial Corporate Business. Specifically, it is the ratio of Market Value divided by Replacement Cost. It might seem logical that fair value would be a 1:1 ratio. But that has not historically been the case. The explanation, according to Smithers & Co. (more about them later) is that "the replacement cost of company assets is overstated. This is because the long-term real return on corporate equity, according to the published data, is only 4.8%, while the long-term real return to investors is around 6.0%. Over the long-term and in equilibrium, the two must be the same..."
Etsy Bitsy Spider
Wasn't the consolidation like 6 months ago the same pattern that broke up?
Gold Is Garbage
$GDXJ $GLD $SLV $BTC.X what, after 33 weeks you're seeing the light - throwing in the towel? Based on.. Buy [BTC] high.. Sell [GLD] low? Cue the BTM in GOLD... See this chart:
charts.stocktwits.com/.../original_309687447.png
What's Happening Now, And What It May Mean Going Forward
I have a hard time expecting markets to grow 5% the next ten years, because where else do people put their money?